The Addition Of "Light Company": The Online Brand Business Is Facing Expansion Questions.

This year, after 2010, the network channel merchants expanded their products on a large scale.

This is an era of electronic commerce crazily, at the same time giving birth to brand rapidly, it is also constantly giving birth to new business models.

In the face of the increasing speed of online shopping, branding is also trying to make plates bigger and bigger.

Jingdong mall makes large-scale department stores, Dangdang network develops joint venture, and Mcglaughlin attracts "Amoy brand".

In 2010, the network channel business expanded large scale to complete the pformation from vertical B2C to integrated B2C.

As a network channel business, a large number of category expansion, unlimited increase of SKU (inventory unit) is its demand for large-scale development.

Just like offline supermarkets and shopping malls, goods and commodities are all the basic guarantee to meet the needs of users.

And another group of e-commerce industry, network brand dealers, can not be as large as a channel merchant, just do simple addition.

The value of branding lies in the brand itself. For example, the user's understanding of masa Marceau is a men's clothing brand, not an online seller.

In this regard, there are still more problems waiting for branding to deal with.

Dual power of capital and users

The online brand business must face the expansion examination questions, the strength comes first from the user's demand.

She Xincheng, chairman of Meng bausa, mentioned the concept of "women shopping decision maker" in an interview with reporters. "The dream bazaar user is a white-collar fashion woman who has the decision-making power of shopping, and 60% of men's clothing is bought by women."

Sun Hong, general manager of Marceau, who is responsible for the specific operation, told reporters that although Masa Marceau is a male brand, nearly half of its customers are women.

However, the problem of fan's products is more direct: everyone has a strong ability of Internet marketing, and the result of marketing is to bring a large number of users. However, many users reflect that they can't buy what they want on the market.

Or, for users, it is impossible to be a product of customers from head to toe.

The common problem faced by the three brands is that the potential demand of users can not be satisfied.

For e-commerce enterprises, it is easy to analyze the composition of users. The result of analysis will give policymakers a temptation: I can give users more things to meet their needs.

This means that the increase of customer unit price means the improvement of conversion rate.

In the traditional sense, brand building is indispensable to quality, design and culture.

However, with the rapid development of e-commerce, the scale has become the top priority.

A Menswear brand, SKU, will not exceed 2000 at most, and its limit paction scale can be calculated.

Unlike platform electricity providers or channel providers, they can create multiple growth rates.

Therefore, its incremental market can only tap more users' needs.

In addition, capital is also an important promoter. The Internet brand has won at least two rounds of financing in the short span of two or three years.

At the end of last year, dream Bazar completed the first round of financing, the total amount of financing exceeded 60 million U. S. dollars, in early 2011, Marceau also received B round of financing.

The industry believes that capital will certainly promote the scale development of the brand.

Because scale means value for capital, and it means the hope of withdrawal.

Internet brand cross-border, capital will be very obvious.

Addition of "light company"

A year ago, when reporters interviewed Sun Hong, he also said he would not get involved in women's clothing because women's clothing was not good at them.

A year later, a woman dress brand named Vivian appeared on the website of masa Marceau.

Another woman's brand website, bazaar, has not only launched the men's wear brand and men's shoes brand, but also added a women's clothing brand independent of the dream bazaar brand. Children's clothing and cosmetics also appeared on the dream bazaar website as brand identity.

She Xincheng told reporters that this is just the beginning, the future dream bazaar brand size will reach more than 30.

For this brand cross-border, she admits that there is no ready experience and mode to follow. It is only a trial and error process under the trend of Internet development.

For example, at the beginning of the menswear brand, Meng Basha was on sale at the beginning of winter wear, and a well sold menswear was more than 3000 yuan, but the mainstream product location was 400~500 yuan.

But for online brands, the cost of such trial and error is much lower than that of offline.

Zhong Kaixin, head of V business, believes that men's wear and women's clothing are separate from traditional department stores.

If a Menswear brand wants to make women's clothing, besides the investment in design, team and production line, the investment in channels is also a big head.

This brand needs to rent a new women's clothing area, hire a shop assistant, add rent and enter the store fee, and the cost of a shop will be millions of dollars a year.

For network brand, this addition is much easier, and the accumulation on the page does not require any cost.

The core resources of an enterprise can be shared.

Take van customer service as an example, van customer has established a standardized backstage system and logistics team, including the mechanism of cash on delivery.

The increase of V does not require large-scale input of manpower and material costs, and even call centers and warehouses can initially be shared with customers.

That is to say, V can only be incorporated into the original supply chain system.

The network brand electric business is all light company, oneself design and sale, the production link is outsourced to the manufacturer.

Whether Martha Marceau or dream bazaar, when crossing the border to make a new brand, it is necessary to increase R & D team from manpower.

Sun Hong said that Vivian is the new design team and the planning team is doing.

She Xincheng also said that the dream of bazaar's Monti emo men's clothing also has an independent more than 20 person design team.

However, she said that the dream of bazaar's future brand building does not exclude the ODM (design outsourcing) mode.

In terms of management structure, it is possible that each brand is run by a team or a team runs multiple brands.

But she admits that it is more difficult to build a brand than to add products to the platform.

Borrowing marketing

For the network brand, the business chain is basically pparent: who the user is, where the advertising entry is, which advertisement is the most effective, the average cost of each order, etc., are all well documented.

Because of this, e-commerce enterprises will find that the cost of obtaining orders has increased this year. First, the price of imports has risen sharply, the advertising level of the portal has increased by 30%, and the navigation website has increased by 50%.

On the other hand, new business enterprises continue to emerge, users have more choices and loyalty is also reduced.

As a result, the high cost of online brand is not easy to lead.

Adding new brands to users will make more choices, and more choices for new users will mean a corresponding increase in conversion rate.

For old users, a new choice may increase their secondary conversion rate.

That is to say, new brands become a possibility of pformation of old brands.

The new brand does not need to spend more marketing cost at the beginning, so long as sharing the old brand flow volume, can make the sales volume.

This is actually a low cost brand operation mode.

At that time, when V was just on line, it popped up a window on the page of van customer's product.

Zhong Kaixin said that until now, V 90% traffic comes from customers.

In the future, in terms of traffic pformation, V may deepen to more subdivided categories.

For example, when users buy POLO shirts on fan Ke Cheng, there is a "you can choose more" related products or similar products under the page. There will be V products in these recommended products.

Users click to enter and enter the V page.

In this way, a product page of any customer can also become a V portal.